The deceased, 44, a major in the armed forces, died on 13 December 1990 due to high fever. Prior to his death he bought a total of ten units in the group insurance scheme policy of the respondents/defendants, Arab-Malaysian Eagles Sdn Bhd, through the Koperasi Tentera. He named his wife, the appellant/plaintiff as the sole beneficiary. The insurer paid her only for the five units which the deceased bought on 1 May 1981, while the insurer denied liability for the balance five units which were bought on 10 July 1987. It is in respect of this that the appeal lies.

The defendants refused to pay her on the ground of non-disclosure of a material fact by the deceased in the proposal form (exh D6), dated 10 July 1987. The plaintiff sued the defendants for the sum of RM89,500 being the assured amount for the additional five units, and interest thereon.

The defendants alleged that the deceased had breached the condition under cl 8(d)(i) of the Second Schedule to the group policy No GP 1025 (exh D7) in that he had made a declaration in cl 5claiming that:

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